Despite arguing that Bitcoin is hampered by a lack of understanding among the general public and poor fungibility for goods without fiat conversion, Cuban offers that Bitcoin may find success if economic crises accelerate and “everything goes into the shitter.”
In a recent appearance on Anthony Pompliano’s The Pomp Podcast, billionaire investor and owner of the NBA’s Dallas Mavericks, Mark Cuban, discussed his qualms with Bitcoin (BTC).
Mark Cuban is bearish on BTC until your grandma can use it
When asked what it would take to change his position of skepticism regarding Bitcoin, Cuban stated: “It would have to be so easy to use it’s a no brainer.”
“It’d have to be completely friction-free and understandable by everybody first, and then you can say it’s an alternative to gold as a store of value,” he added.
“You’re going to have to make it friction-free so grandma can do it, adding “the fact that we are arguing so much about it, and you have so many stands about Bitcoin – that just proves the point, that it’s difficult.”
Bananas comprise easier means of payment than Bitcoin
Cuban argued that Bitcoin comprises a cumbersome means of exchange through lacking fungibility for goods and services without converting into fiat currencies.
“Right now, you still have to convert it for anything that you want,” he stated, adding: “[A]s long as you have to convert it, you are still dependent on fiat, no matter what you say.”
“I can trade bananas easier as a commodity than I can trade Bitcoin, and I can still eat that banana before it goes bad, and get all my potassium for my workout.”
Cuban recounts briefly supporting payments in Bitcoin on the Mavericks’ online store four years ago, stating “no one bought anything.”
After reintroducing support for merch and ticket purchases in BTC in August 2019, Cuban estimates that the payment method has brought in $130 dollars, adding: “that’s all of the Bitcoin that I own right now.”
Mark Cuban: Bitcoin may benefit if ‘everything goes into the shitter’
While Cuban acknowledges blockchain can offer great opportunities, he asserts that “we haven’t really seen blockchain applications really take off. I get all of the arguments, I’ve seen all of the charts, I understand all of the potential problems with fiat,” he states, adding:
“It’s to Bitcoin’s potential benefit if everything goes into the shitter because we’re printing so much money and there’s global implications. […] And if we don’t, Bitcoin ain’t got nothing.”
Mark Mobius Argues Bitcoin Should Be Backed by Gold to Have Any Value
Famous emerging markets investor Mark Mobius believes that Bitcoin (BTC) needs to be backed by gold to have any value.
Crypto and blockchain are “very risky situations”
Mobius, founder at frontier markets asset manager Mobius Capital Partners, expressed concerns over risks associated with cryptocurrencies and blockchain tech in an interview on Squawk Box on Sept. 5.
When CNBC’s crypto activist Joe Kernen asked whether Mobius believes that Bitcoin has inherent value, the famed investor avoided answering the question directly, claiming that the world really needs a cryptocurrency that would be backed by gold.
“If there is a cryptocurrency that is really backed by gold – and that is, there is a meaningful agreement and some kind of modern thing of this connection – then this could be quite interesting.”
Anything created by humans can be broken into
Kernen noted that there is no fiat currency that is backed by gold, raising the question why any crypto needs to have the same backing, Mobius conceded that the key point in the issue is the question of faith. Mobius elaborated that there is a whole generation of people who have faith in the Internet as well as cryptocurrencies, and “that’s all it takes:”
“The reason why people believe in the U.S. dollar is because they have faith that with dollars in their hands, they can buy something. So there’s a degree to which if cryptocurrency can enable you to buy something and you believe that to be the case, that’s fine.”
While reiterating his recent statements that it is a matter of faith whether people believe in Bitcoin or any other crypto, the veteran investor still emphasized concerns over the industry, arguing that people will soon begin to realize that cryptocurrencies are very risky.
Moreover, blockchain technology also poses a significant risk, Mobius noted, stating that blockchain can be broken into just as every technology created by humans, despite a blockchain’s function of immutability.
On Aug. 20, Mobius suggested that cryptocurrencies have the potential to boost the price of gold, predicting that the rise of faith in Bitcoin and other cyber-currencies will trigger a demand for a real, hard asset such as gold.